Employer of Record in Costa Rica (2026): CCSS, Aguinaldo and Contracts

An employer of record (EOR) lets a foreign company hire in Costa Rica before it sets up its own entity. The EOR is the legal employer: it registers the employee with the CCSS (Costa Rica’s social security fund), takes out the mandatory INS work-risk policy, runs payroll and withholds income tax. You direct the work and pay the employment cost plus a fee.

How an EOR works in Costa Rica

• The employee is reported to the CCSS through the SICERE system from the start of employment.
• The employer holds an INS occupational-risk policy covering every worker.
• Salaries can’t be below the minimum for the occupation set by the Ministry of Labor (MTSS).

What employing someone costs in Costa Rica

• Minimum wage: ₡373,092.30 a month for an unskilled generic worker (TONCG) from 1 January 2026 (Executive Decree 45303-MTSS). Higher minimums apply to skilled and professional roles.
• Employer social charges: 26.83% of gross salary in 2026, made up of CCSS health (SEM) 9.25%, pensions (IVM) 5.58%, Banco Popular 0.5%, FODESAF 5%, IMAS 0.5%, INA 1.5%, the labor capitalization fund 1.5%, complementary pensions 2% and INS 1%.
• Employee withholdings: 10.83% (SEM 5.50%, IVM 4.33%, Banco Popular 1%), plus salary income tax by brackets.
• Aguinaldo: one twelfth of the pay earned from December to November, paid within the first 20 days of December.
• Vacation: at least two weeks of paid vacation for every 50 weeks worked.

Contracts and working time

Contracts are usually indefinite, and the first three months work as a probation period. The ordinary day shift is 8 hours a day and 48 hours a week, and overtime is paid at 150%.

Ending employment

Dismissal without just cause requires notice (preaviso): one week after three months of service, 15 days after six months and one month after a year, or pay in lieu (Labor Code, art. 28). Severance (cesantía) follows art. 29: 7 days’ pay for 3 to 6 months of service, 14 days for 6 to 12 months, and after a year a scale from 19.5 days per year (year 1) up to 22 days (years 7 to 9), falling to 20 days from year 13. Only the last 8 years are paid. Accrued aguinaldo and vacation are always paid.

When to set up your own company

For a growing team or local invoicing, it is usually better to set up your own company in Costa Rica and employ staff directly. See our employer of record and PEO services in Latin America and our payroll outsourcing in Costa Rica guide.

Get help from Easyco

Easyco coordinates the company setup in Costa Rica up to the issue of the cédula jurídica, and supports companies afterwards with tax, accounting, payroll and company compliance, including a registered office address. Request a quote to discuss your hiring plans.